If you owe the IRS money, you may not be able to leave the country. The IRS is taking away passports as part of IRS Section 7345. It allows them to advise with the State Department to suspend or deny the passports of taxpayers. Luckily, this mostly applies to those who owe a lot of…
Every year, my clients save millions of dollars because the time for the IRS to collect has expired. The Statute of Limitations for when you owe the IRS money is 10 years from the day the tax was assessed. Some of these people have been declared uncollectible by the IRS or have been making small…
At my first meeting with a prospective new client, their biggest fear is people is going to jail for not filing tax returns or not paying outstanding debt. As a general rule, all the IRS wants from most people are all of the tax returns and an agreement to resolve the balance owed.
If someone wants to file an Offer in Compromise to settle their tax debt, the IRS will not make a business decision. In the real world, if you owe someone $100,000 and offer them $80,000, the creditor will probably accept the deal. However, the IRS will never leave money on the table.
Failing to file a personal tax return on time carries with it a 5% penalty per month, maxing out at 25%. Filing to pay personal taxes on time initially brings with it a .5% penalty per month, also stopping when it hits 25%. If both penalties apply, the maximum monthly liability of a taxpayer is…
